Underinsured Motorist coverage will pay the difference between which two limits?

• A. The insured's UIM limits and the at-fault driver's insurance bodily injury limits
• B. The insured's UIM limits and the insured's liability limits
• C. The at-fault driver's property damage limits and BI
• D. The insured's uninsured limits and the at-fault's BI limits

Answer: (A)

Underinsured motorist coverage exists to fill the gap when the other driver doesn’t have enough liability coverage to fully pay for your injuries. It pays the difference between your own UIM limit and the at-fault driver’s bodily injury liability limit, up to your UIM limit. In other words, if the other driver’s BI limits are too low to cover your damages, UIM covers the shortfall, but never beyond your UIM policy limit. This payoff relates to bodily injuries, not property damage, and it won’t apply if the other driver’s BI limits are enough to cover your damages. If the damages exceed both the other driver’s BI limits and your UIM limit, UIM would pay only up to your limit.